Arcan Resources Ltd.
TSX VENTURE : ARN

Arcan Resources Ltd.

September 11, 2007 08:48 ET

Arcan Resources Ltd. Announces $10.4 Million Bought Deal Private Placement Financing

CALGARY, ALBERTA--(Marketwire - Sept. 11, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Arcan Resources Ltd. (TSX VENTURE:ARN) ("Arcan") is pleased to announce today that it has entered into an agreement with a syndicate of underwriters led by FirstEnergy Capital Corp. and including, Cormark Securities Inc., Paradigm Capital Inc., Blackmont Capital Inc. and Wellington West Capital Markets Inc. (collectively the "Underwriters"), pursuant to which the Underwriters have agreed to offer on an underwritten basis 1,500,000 common shares of Arcan at a price of $3.45 per share, and 1,200,000 common shares of Arcan to be issued on a "flow-through" basis under the Income Tax Act (Canada) (the "Tax Act") at a price of $4.35 per share, for aggregate proceeds of $10,395,000 million. Proceeds from the offering will be used to fund Arcan's ongoing capital expenditure program and for general corporate purposes. Arcan will agree to make expenditures qualifying as "Canadian exploration expenses" under the Tax Act on or before December 31, 2008 in an amount equal to the aggregate subscription proceeds of the flow-through common shares, effective December 31, 2007.

All sales will be made on a private placement basis pursuant to exemptions from the prospectus requirements of applicable securities laws. The closing of the offering is expected to occur on or about September 27, 2007 and is subject to certain conditions including, but not limited to receipt of all necessary regulatory approvals including the approval of the TSX Venture Exchange.

These securities have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state, and may not be offered or sold in the United States unless an exemption from registration is available. This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities in the United States.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arcan Resources Ltd.
    Ed Gilmet
    President and CEO
    (403) 262-0321
    Email: egilmet@arcanres.com
    or
    Arcan Resources Ltd.
    Douglas Penner
    Vice President, Finance and CFO
    (403) 262-0321
    Email: dpenner@arcanres.com
    or
    Arcan Resources Ltd.
    Suite 3200, 450 - 1st Street S.W.
    Calgary, Alberta T2P 5H1
    (403) 262-0321
    (403) 262-4636 (FAX)